ICBC is waiving fees for drivers who choose to cancel their auto insurance until COVID-19 restrictions are eased.
The public auto insurer says it is waiving the $30 cancellation fee as well as the $18 re-plating fee during the pandemic.
“We know many British Columbians are facing financial challenges as a result of the COVID-19 pandemic,” said ICBC President and CEO, Nicolas Jimenez, in a release.
Licence plates will have to removed from a vehicle if it is not insured. If a vehicle is re-insured on or after May 30th, people will be able to re-use their old plates. People re-insuring a vehicle before May 30 will be given new plates at no charge, according to ICBC.
The auto-insurer will also allow fleet-vehicle customers to suspend their insurance, while drivers with expiring learner’s licences will not have to pay a retest fee.
Drivers will also be allowed to use their vehicles to deliver food and medicine without changing their insurance or paying a higher premium.
“Businesses are also having to adapt to the situation, with many companies changing their business model to offer delivery services so people can access the food and medical products they need while physical distancing,” Jiminez added.
“ICBC is responding to these needs and taking action to ease the burden for everyone during this difficult time.”
Measures Not Enough says Taxpayers Federation
Despite these measures, the Canadian Taxpayers Federation is urging the B.C. government to give drivers more immediate relief by reducing ICBC’s insurance rates.
B.C. Director Kris Sims says while the cancellation fees have been waived, the auto-insurer needs to do more to help people weather the crisis.
“Drivers in B.C. need to see a rate reduction from ICBC right now,” Sims said. “Insurance providers in other parts of Canada have already sent their customers refunds on their rates, and we should be seeing the same thing from ICBC.”
She says drivers in other parts of Canada have seen similar rate reductions including a 25 per cent refund from Allstate Canada, and a 75 per cent refund from Intact Insurance and Aviva to drivers who stop using their vehicles altogether.
Last month, ICBC allowed drivers the option of deferring monthly insurance payments for up to 90 days without penalty. However, so far it is not offering rebates on premiums despite a decline in traffic on the roads.
People are however encouraged to reach out to their brokers about changing coverage and lowering premiums to reflect changes in how much they drive because of the pandemic.
